New Car Lease vs Buy

New Car Leasing vs Buying

Why Should You Lease a New Car?

If you prefer to drive newer, safer, more reliable cars, but prefer not commit to a big down payment every few years, and also do not travel an excessive amount of miles yearly, then a new car lease could be better for you. Leasing is designed for those who would prefer to avert the hassle of buying and selling every time they want to upgrade to a new car, truck, or SUV.

Why Should You Buy a New Car?

Conversely, if you prefer long term relationships with a larger sense of ownership and commitment, then buying may be what’s right for you. Car-buying is typically best for those who don’t mind driving the same car for more than five years or even until it’s no longer suitable for the road.

Buy vs Lease: Which One Is Right for You?

Being aware of the pros, cons, and overall benefits of buying vs leasing a vehicle is imperative. Be sure to contemplate monthly payments, vehicle ownership, repair costs, and potential savings when considering the best new car, truck or SUV financing type for you.

Buying: Ownership vs Leasing

When considering vehicle financing, new car ownership surely comes with many advantages, most associated with complete ownership of the car or truck. You may not realize, however, there are also some nice benefits of leasing, as well. It’s imperative to consider all financial aspects including monthly payments, down payment, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A close diagnosis of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car.

pros and cons of leasing vs financing a new car

Monthly Payments

Car, truck, or SUV lease payments are often times less expensive when compared to car financing and loan payments as the normal lease contract is basically renting with the option to buy out at the end of your lease term. Just consider when leasing that you will need a higher credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the better rate auto loans. Although it might likely increase monthly payments, it is also wise to get a model with the features you need or want, as personal satisfaction is often priceless.

is it better to finance or lease a car

Maintenance & Repair

Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when projecting monthly costs of leasing vs ownership. Regardless of which make and model you buy, mechanic bills are an unpredictable cost that can rapidly add up. And for those of us who aren’t certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing could be the best option for peace of mind.

lease vs finance car analysis

Investment vs Savings

In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For your best investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.

LeaseBuy
OwnershipNo OwnershipPride of Ownership
Down PaymentSmaller Down PaymentLarger Down Payment
Monthly PaymentSmaller Monthly PaymentsLarger Monthly Payments
Maintenance & Repair CostsTypically IncludedNot Included
Savings/InvestmentShort Term SavingsLong Term Investment
Finance TermApprox. 2-4 YearsApprox. 3-6 Years
APR %Credit-BasedCredit-Based
New VehiclesAvailableAvailable
Pre-Owned VehiclesNot AvailableAvailable
Vehicle CustomizationNot AvailableAvailable
Poor Credit FinancingNot AvailableAvailable

Honda Lease and Finance Offers In Tulsa OK

South Pointe Honda knows that choosing the right Honda car and financing option is never easy. Our team of experienced Honda lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Tulsa, OK. We look forward to serving you.


Found the car I wanted online and sent request. South point was quick to follow up and get me scheduled for test drive. The entire process was quick, efficient and get this!!!! The salesman was HONEST & KIND! Even after the sale Paul called to follow up. Yep this is the place to go!

Customer: Lee Tanner
Date: 2021-01-13

Our experience was with Tim and Ryan in used car sales and also with the service department back in December 2020. My wife had a trade in and they didn't offend us with a low ball offer. She was looking at a 2016 Ford Explorer Sport. I thought it was for a good price and when a problem was discovered during the test drive they fixed it at no cost to me. Service department is excellent with time management and put in effort to satisfy because the problem has not returned. The finance department was informative and honest. Because of these positive events she bought the 2016 Ford Explorer Sport from them. Rarely do you have a trifecta of excellence at a single dealership. Worth the trip from Oklahoma City.

Customer: Franciosa Jackson
Date: 2021-01-10

Today’s experience is just another reason why I continue going back to South Pointe Honda. I was greeted immediately by Trey, who was professional, courteous, and helpful. He explained, in detail, what I needed to do and the best approach for me and my budget. I appreciated his help and will continue patronizing South Point.

Customer: Shelly Morgan
Date: 2020-12-20

Anthony Harwell is amazing! When you go, definitely ask...

Anthony Harwell is amazing! When you go, definitely ask for him! He was super patient with us! I had four kids with me and 1 million questions, we had to change things up a couple of times (because of me), and he was very understanding, patient and easy going! 10/10 recommend South Pointe Honda and Anthony Harwell!

Customer: Ezell.lauren
Date: 2020-12-18

I am a new owner of a 2018 Honda Pilot and this was my first service through Southpoint Honda for my 85K service, which I booked via their website. The facility was very clean and easy to navigate. The automatic doors were a cool enhancement and make for an easy flow of not having to be out in the elements when dropping off my vehicle. Communication about my vehicle was done via mobile text messages and the interface to approve/disapprove my vehicle service was simple and made sense. The vehicle service report was also emailed to me for my records. The service was done in a timely fashion (2.5 hours for oil, transmission and brake fluid service). My vehicle was returned to me clean with a fresh wash and no complaints from me. I am looking forward to my many services to come at this dealership.

Customer: Cardiac Drummer
Date: 2020-12-14